Petroteq has reported that, on March 18, 2019, oil production sales have commenced at the Asphalt Ridge facility. Two loads of 250 barrels of oil having an API gravity of 17 were sold, with additional oil remaining in crude oil storage tanks located at Petroteq’s processing facility in Utah.
The Company and its management view this sale as significant since the specifications and characteristics of this oil produced to meet our buyer’s requirements – departs from the lighter API 35-degree oils previously produced and sold.
Petroteq has recently observed an increase in demand for heavier crude oils by U.S. refiners, particularly with respect to the lower API gravity oils, having a relatively low sulfur content, that we are able to produce at the Asphalt Ridge facility.
Asphalt Ridge oil sands processing facility is designed to produce 1,000 bpd and new rated production capacity is expected to be achieved within the coming weeks. Additional sales of oil production will be reported in new releases and in quarterly financials as the Company brings online its second processing train at the Asphalt Ridge facility and has fully commissioned its recently installed extraction and recovery process equipment.
Commenting on Petroteq’s recent sale of heavy oil, David Sealock, CEO, stated that, “Through recent refinements at our Asphalt Ridge facility, we are now able to produce a heavier crude oil (API gravity 17) having a relatively low sulfur content and a low sediment factor (i.e. below .05% BS&W). This in my view showcases our technology’s flexibility to meet changes in market demand in a way that maximizes our bottom line. We are looking forward to a year of stable and growing production from our Asphalt Ridge facility."